“Cash for Clunkers” programs the world over are being touted as a success. Meanwhile dealers are wondering how they can sell…just one car… now.
“German Clunkers Scheme Was Surprising Success”
The issue now is whether a recovery in demand will come soon enough to compensate for the end of government incentives.
Recent figures from the U.S., crucial to Mercedes and BMW, suggest that demand for German cars there is recovering. German policymakers can only hope it recovers fast enough that that history judges their wreck rebate as a success and not a boondoggle.
Meanwhile, back here in the states…from the very same edition of BusinessWeek:
“August was the best month of the year, but it’s possible that it could be followed by the worst month this year,” says Jeremy Anwyl, chief executive officer of Edmunds.com.
Essentially, the government pissed away a couple billion dollars in August to incent people that wouldn’t have otherwise bought cars…until…oh my gosh…September! (!!!)
…like other carmakers, GM saw sales trail off after the clunkers program ended. And it appears that the rebates sucked some sales out of September as well. Michael DiGiovanni, GM’s executive director of global market and industry analysis, says that he thinks about 200,000 of the 700,000 cars sold under the clunkers program were pulled ahead from future months.
Well done, libs, well done. You saved the auto industry…for six weeks.